Scrutiny of Several Altcoins Intensifies in South Korean Crypto Community

cryptonews.com:

In South Korea, the cryptocurrency community is calling for stronger reporting standards and a more rigorous regulatory framework as multiple virtual assets encounter delistings and circulation discrepancies, according to Digital Today.

The push for enhanced oversight follows a series of delistings and reported inconsistencies in the circulation volumes of altcoins such as Galaxia (GXA) and Enjin (ENJ), sparking controversy and undermining investor confidence in the market.

Enjin Coin was delisted from the Upbit fiat market in September due to a significant increase in tokens released. The Enjin Coin mainnet integrated the original Ethereum-based tokens with a new Polkadot-based chain, resulting in the issuance of up to 2 billion new tokens.

Last September, 350 million ENJ tokens were released and distributed, leading to a substantial 35% of total existing tokens being released into the market within two months of the mainnet’s launch, potentially driving up the token’s inflation rate to about 75%.

Galaxia (GXA), another virtual asset, also fell into controversy when it was discovered that the actual number of tokens in circulation exceeded the amount initially announced by the foundation.

On October 17, a hack on the platform compounded the issue with 380 million GXA tokens stolen. Following the hack, Galaxia was found to have exceeded the announced distribution volume in the market. As of October 31, the distribution announced by the Galaxia Foundation was 2.5 billion units, but the actual distribution amount reached 3 billion units.

Galaxia Foundation responded to the incident, claiming, “The quantity known to have been exceeded, approximately 500 million units, is the quantity paid by the Galaxia Foundation to Galaxia